Palo Santo, literally meaning “holy wood” in Spanish, is a tree that is widely distributed throughout Central and South America. Palo Santo is used in South America in much the same way as White Ceremonial Sage is used in North America- to combat negative energy and to cleanse the space.
Palo Santo is different than many of the other smudging materials as it is fragrant in its raw form and does not necessarily need to be lit, though it usually is when being used for ceremonial purposes. Palo Santo is often used by Amazonian shamans in sacred plant spirit ceremonies; the rising smoke of the lit sticks is believed to enter the energy field of ritual participants to clear misfortune, negative thoughts and to chase away evil spirits. Its use reportedly dates back to the Inca era.
Burn the tip of a stick of Palo Santo for 30 seconds, blow it out, and move around the space you're using it in. Place it in a fireproof dish when finished until it naturally dies out.